14:34 PM, 15th November 2021, About 11 months ago 3
Hi, this question mainly relates to Capital Gains Tax (CGT) and Principal Private Residence Relief (PRR). I know you are going to tell me to speak to my advisers, but they are simply not property experts and just don’t know.
In the not too distant future, I am thinking of moving back to a property I originally bought as my principal home. I moved away with work after about 7 years and let it out. This could work for me for a couple of years as it’s a nice area, and it may also improve my CGT position.
I understand that PRR was changed a few years ago and Lettings Relief was scrapped. So my 2 questions are:
– Would I have to redeem my BTL mortgage and set up a new residential mortgage.
– If the property became my main home again would I be exempt for CGT under PRR rules, or does just the years in occupation calculated against total years owned apply.
Any knowledge on this topic is much appreciated.
Please see HMRC Capital Gains Tax Calculator >> https://www.gov.uk/tax-sell-property/work-out-your-gain
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